10.04

Reserves Policy

Policy Statement

It is our intention to maintain a reserve fund to cover unexpected costs such as redundancies, emergency expenses etc, as per the Charity Commission requirements.

Procedure

• We aim to hold a reserve fund equivalent to 3 months running costs.

• We hold sufficient funds which would adequately cover our costs in the case of an emergency, (including staff redundancy payments if the pre-school were to close permanently.

• We will produce an annual budget, which will aim to provide a small surplus which can be set aside for the reserve fund if necessary. If not required in the reserve fund it will be invested into the pre-school in line with our PSLA constitution.

• The level of reserves will be reviewed annually to make sure it is compliant with this policy and the annual budget and reserve fund adjusted if necessary in line with legal redundancy requirements.

This Policy was adopted by Sparklers Pre-School

This Policy was approved by Sparklers Pre-School Committee